Balfour Beatty lifts UK construction margin to 3.5%

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Balfour Beatty’s UK Construction margin rose above target in 2025, alongside higher revenue, stronger profit and a record order book driven by infrastructure demand.

IN Brief:

  • Balfour Beatty’s UK Construction margin reached 3.5% in 2025, ahead of its long-standing 3% target.
  • Revenue rose to £3.112bn and underlying operating profit increased to £110m.
  • A record £22.7bn group order book points to more delivery across UK power, defence and transport markets.

Balfour Beatty has lifted the operating margin in its UK Construction business to 3.5% for 2025, up from 2.7% a year earlier and above its long-held 3% target. Revenue rose to £3.112bn, while underlying profit from operations increased to £110m. Excluding an £11m insurance recovery, the business still delivered a margin of 3.2%.

The improvement came alongside higher volumes in the energy sector and a larger workload. Balfour Beatty’s group order book ended 2025 at a record £22.7bn, up 23% year on year, while the UK Construction order book reached £8.9bn. The company highlighted more than £3.5bn of new UK power generation orders and pointed to further pipeline in power transmission, defence and transport.

The result leaves the UK construction portfolio more heavily weighted towards regulated and strategic infrastructure work. Energy-related activity supported revenue growth in 2025, and the business has forecast further profitable growth in 2026 and 2027 as activity continues across major infrastructure programmes.

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